Core Consumer Prices Surge At Fastest Rate Since 2008

After a hotter-than-expected producer price print yesterday, consumer prices were more mixed with headline CPI rising less than expected and core CPI rising more than expected.

In fact, core CPI rose 2.4% YoY (2.3% exp) - which is the hottest since September 2008...

Source: Bloomberg

Energy prices weighed the index down as commodity prices rose. The core reading reflected the biggest monthly rise in medical-care costs since 2016. Also driving the core inflation gain were used-car prices, up 1.1% for a third straight increase, while new-vehicle costs dropped for a second month.

 

The surge in inflation was led by a jump in Goods prices...

Source: Bloomberg

 

On the brighter side, shelter/rent inflation slowed a little in August...

Inflation may pick up further this month following the latest escalation in the tariff battle, as President Donald Trump’s levies on a range of consumer goods from China took effect Sept. 1.

So hotter-than-expected CPI and PPI must be transitory, right? Or Powell won't be able to deliver what Trump and the market demand?